Mumbai Real Estate

This page describes the present Mumbai Real Estate scenario By 'Real Estate' we usually refer to immovable property, which includes land and anything that is attached to it.

Mumbai is a mature and well-developed Real Estate market. It is a demand-motivated market; where the property is bought for current use and not with the aim to speculate and sell it in future. This has led to the burgeoning of the Mumbai Real Estate market. The spurt in demand as well as supply of Real Estate products and the consequent increase in capital values are encouraging High Networth Investors (HNI) and other investors to make active investments in the Mumbai Real Estate market.

The investments made by the Investors and HNI's have showed an astonishing 50% increase per year. The rent collection of the Real Estate investments is at an attractive 11 to 12 percent per annum, thus translating into a gain of over 70% in two years, which is a stunner by any standards.

The most attractive sectors for investment are the commercial Real Estate sector. Another high paying sector is retail. The occupancy levels of most commercial buildings are at 90 to 95 percent. Commercial properties have shown capital appreciation in the region of 15% to 35% in values per year

Land prices are expected to escalate by 5 to 10 percent in Mumbai according to the government authorities responsible for stamp duty and registration. Prices in south and central Mumbai are expected to move up the most.

In case of Residential property, maximum demand is found in the mid-level segment. The demands for 3BHK properties are also set to increase. This demand is due to factors like high disposable income and total greater affordability.

The demand for residential property can be sustained if the Indian economy remains stable and the interest rate low. Residential property has shown an appreciation of 15 to 20 percent over the last year. The rent takings have also increased by 20% over the same time period.

The consistent increase in demand for Mumbai Real Estate should help to stabilize the prices in the near future.